Correlation Between Amundi FTSE and PIMCO Euro
Can any of the company-specific risk be diversified away by investing in both Amundi FTSE and PIMCO Euro at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Amundi FTSE and PIMCO Euro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi FTSE EPRANAREIT and PIMCO Euro Short, you can compare the effects of market volatilities on Amundi FTSE and PIMCO Euro and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Amundi FTSE with a short position of PIMCO Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi FTSE and PIMCO Euro.
Diversification Opportunities for Amundi FTSE and PIMCO Euro
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and PIMCO is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Amundi FTSE EPRANAREIT and PIMCO Euro Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Euro Short and Amundi FTSE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Amundi FTSE EPRANAREIT are associated (or correlated) with PIMCO Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Euro Short has no effect on the direction of Amundi FTSE i.e., Amundi FTSE and PIMCO Euro go up and down completely randomly.
Pair Corralation between Amundi FTSE and PIMCO Euro
Assuming the 90 days trading horizon Amundi FTSE EPRANAREIT is expected to under-perform the PIMCO Euro. In addition to that, Amundi FTSE is 40.22 times more volatile than PIMCO Euro Short. It trades about -0.13 of its total potential returns per unit of risk. PIMCO Euro Short is currently generating about 0.58 per unit of volatility. If you would invest 10,255 in PIMCO Euro Short on September 13, 2024 and sell it today you would earn a total of 57.00 from holding PIMCO Euro Short or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi FTSE EPRANAREIT vs. PIMCO Euro Short
Performance |
| Timeline |
| Amundi FTSE EPRANAREIT |
| PIMCO Euro Short |
Amundi FTSE and PIMCO Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi FTSE and PIMCO Euro
The main advantage of trading using opposite Amundi FTSE and PIMCO Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi FTSE position performs unexpectedly, PIMCO Euro can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PIMCO Euro will offset losses from the drop in PIMCO Euro's long position.| Amundi FTSE vs. Baloise Holding AG | Amundi FTSE vs. 21Shares Polkadot ETP | Amundi FTSE vs. UBS ETF MSCI | Amundi FTSE vs. BB Biotech AG |
| PIMCO Euro vs. PIMCO Short Term High | PIMCO Euro vs. PIMCO Short Term High | PIMCO Euro vs. PIMCO Euro Short Term | PIMCO Euro vs. PIMCO Low Duration |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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